Key Insights
- Hudson Global's Annual General Meeting to take place on 21st of August
- Salary of US$400.0k is part of CEO Jeff Eberwein's total remuneration
- The overall pay is comparable to the industry average
- Over the past three years, Hudson Global's EPS fell by 119% and over the past three years, the total loss to shareholders 74%
Shareholders will probably not be too impressed with the underwhelming results at Hudson Global, Inc. (NASDAQ:HSON) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 21st of August. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for Hudson Global
How Does Total Compensation For Jeff Eberwein Compare With Other Companies In The Industry?
According to our data, Hudson Global, Inc. has a market capitalization of US$25m, and paid its CEO total annual compensation worth US$410k over the year to December 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is US$400.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the American Professional Services industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$490k. So it looks like Hudson Global compensates Jeff Eberwein in line with the median for the industry. What's more, Jeff Eberwein holds US$2.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$400k | US$400k | 97% |
| Other | US$10k | US$9.9k | 3% |
| Total Compensation | US$410k | US$410k | 100% |
Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. Hudson Global is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Hudson Global, Inc.'s Growth Numbers
Over the last three years, Hudson Global, Inc. has shrunk its earnings per share by 119% per year. It saw its revenue drop 3.6% over the last year.
The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Hudson Global, Inc. Been A Good Investment?
With a total shareholder return of -74% over three years, Hudson Global, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Jeff receives almost all of their compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Hudson Global that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.